Berkshire's 'ridiculously cheap' option: Pro

Scott Black, Delphi Management president, shares his top three stock picks, including a bet on Berkshire Hathaway, America's energy boom and flash memory.

Scott Black, the president and founder of Delphi Management, loves cheap stocks.

Lucky for him, he found three amid a roller-coaster year for equities. The money manager gave CNBC's "Squawk Box" his three best value plays to help deal with this year's violent swings in the stock market, including one of the market's biggest names.

For his first pick in the Platinum Portfolio challenge, a running contest between top money managers, Black chose Berkshire Hathaway Class B shares as a much cheaper alternative to its about $190,000-per-share older brother, the company's Class A shares.

He also named PDC Energy as an undervalued stock with high upside. The oil-and-gas company has a strong position in Colorado's Wattenberg gas field, and its drill bit production is "exploding," Black said.

Lastly, Black said memory chip maker SanDisk should continue to expand its bottom and top lines, and he forecast the company raking in 10 percent profit growth in fiscal 2014. SanDisk is the biggest player in the flash memory sector, owning more than half of the market, he said.